The Dutch business climate is dropping to a six

A six, that is the score that entrepreneurs in the Netherlands gave this year. Despite this figure, the Netherlands remains one of the leading international groups of countries that are doing well in terms of innovation and competitiveness. This is evident from the business climate monitor commissioned by the Ministry of Economic Affairs.

Various studies show that companies have been increasingly less satisfied with the business climate in the Netherlands for years. Accounting firm PwC published this summer a report which shows that the score for the Netherlands has been declining since 2018. For some companies, this is itself a reason to leave.

The departing companies were reason for the previous government to commission SEO Economic Research and the University of Amsterdam (UvA) for the first time to look at the satisfaction of entrepreneurs in the Netherlands. In the research agency’s first report, the business climate in 2022 received almost a seven (6.7). Last year it fell to just over six (6.4) and now it has fallen again: 6.0. Entrepreneurs could give the Netherlands figures based on fourteen themes, such as infrastructure, presence of talent and financing options.

According to the VNO-NCW business association, these figures are ‘worrisome’, but do not come as a surprise. Their own research also shows that the business climate has been deteriorating for years.

It is not only large companies such as ASML and Booking.com that have recently expressed their concerns about the business climate in the Netherlands. Many startups also look beyond the Dutch border. The financing options in the US, for example, are much easier and are ultimately a reason for a move.

Of the entrepreneurs surveyed, a third gave the Netherlands an unsatisfactory rating. As expected, the tightness on the labor market is experienced as a problem. But the regulatory burden and unpredictability of the government also cause dissatisfaction among many entrepreneurs.

Minister Beljaarts of Economic Affairs is this afternoon in Eindhoven at the first entrepreneurs’ summit organized by the minister. He has said several times that the government is pro-business.

The minister will come up with an action plan, in which he will look together with the business community at how the business climate in the Netherlands can be improved in the coming years. “We have received valuable input about the bottlenecks, but also inspiring examples of entrepreneurs who see and seize opportunities. These contributions help us to create a solid and future-oriented business environment,” Beljaarts said in Eindhoven.

Industry clubs VNO-NCW and MKB Nederland say they think Beljaarts’ plans are a good first step. “Entrepreneurs need certainty to be able to make necessary long-term investments.”